publication date: Nov. 4, 2016
MD Anderson Projects $450 Million Loss in Fiscal 2017
By Paul Goldberg
MD Anderson Cancer Center lost $267.1 million on its operations in fiscal 2016. Now, a month into fiscal 2017, America’s largest cancer center is on track to lose $400 million to $450 million.
In a confidential report intended for department chairs, MD Anderson’s administration attributes the operating loss to four factors:
• Epic system (tools, reports, technology fixes);
• Providers – Capacity (Mondays & Fridays; weekends for select services; services at right location);
• Demand (wait times, rate of incoming calls/requests to set up appointments);
• Insurance coverage.
Epic, an electronic medical record software, was deployed by MD Anderson in March. Though it’s not clear precisely how this implementation affected the cancer center’s finances, at other institutions, new EMR systems have been known to, at least initially, slow down the physicians’ progress as they enter data from patient encounters, lowering the number of patients seen.
According to the document, the magnitude of the loss would be equal to the cost of maintaining 4,500 to 5,000 full time equivalent positions. The Houston institution, which is celebrating its 75th anniversary this year, employs about 20,000 people.
In 2015, the cancer center’s total operating revenues were at $4.086 billion.
The confidential report shows that the operating margin … Continue reading MD Anderson Projects $450 Million Loss in Fiscal 2017
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